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International Cooperation and Intra-Industrial Transactions

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  • Gilroy, Bernard Michael
  • Broll, Udo

Abstract

The paper examines theoretically the empirical observation or increasing levels of intra-industrial trade flows. The relationship between intra-industrial trade and consumer preferences in addition to product differentiation advanced by internationally active firms are discussed within the framework of a simple model of international trade in differentiated goods. In an international free trade scenario, ranking high in product differentiation and monopolistic market structures, the intensity of international trade activities steadily rises as the structure of consumer preferences exhibits demand pattern similarity: export and import levels rise simultaneously. Intra-industrial commodities exchanges as well as investment cross-hauling of multinational enterprises prove to be important vehicles international cooperation among nation.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18705.

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Date of creation: 1988
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Handle: RePEc:pra:mprapa:18705

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Related research

Keywords: intra-industrial trade; consumer preferences; product differentiation; international trade; multinational enterprises;

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References

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  1. Broll, Udo & Gilroy, Bernard Michael, 1986. "Comparative Advantage and Trade Patterns," MPRA Paper 18155, University Library of Munich, Germany.
  2. Broll, Udo & Gilroy, Bernard Michael, 1985. "Developing Countries in Light of Intra-Trade," MPRA Paper 18046, University Library of Munich, Germany.
  3. Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Scholarly Articles 3445092, Harvard University Department of Economics.
  4. Gilroy, Bernard Michael, 1989. " Intra-firm Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 3(4), pages 325-43.
  5. Balassa, Bela, 1986. "Intra-Industry specialization : A cross-country analysis," European Economic Review, Elsevier, vol. 30(1), pages 27-42, February.
  6. Gilroy, Bernard Michael & Broll, Udo, 1987. "West Germany - Expanding Where The Markets Are," MPRA Paper 18156, University Library of Munich, Germany.
  7. David Greenaway, 1983. "Intra-industry and inter-industry trade in Switzerland," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 119(1), pages 109-121, March.
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Cited by:
  1. Bernard Michael Gilroy, 1991. "Schweizerische Pflichtlagerhaltung und ihre Finanzierung," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 127(III), pages 431-443, September.

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